A report published by Northern Ireland's Industrial Task Force claims that up to 180,000 jobs would be created and some £17.5 billion (€25.7 billion) in revenue generated if corporation tax in the region was cut from 30 per cent to 12.5 per cent, in line with the rate available in the Republic.

The study by the Economic Research Institute of Northern Ireland projects that with such a tax cut, Northern Ireland would receive a level of about 40 per cent of the overseas investment forecast for the Republic. By 2017, the cumulative tax cost of such an initiative would be repaid and by 2030, revenues of £17.5 million would be generated.

Task force chairman Sir George Quigley, formerly chair of Ulster Bank, said at the report's publication in Belfast yesterday that he was confident a tax cut could be agreed with the UK Treasury as part of an economic package linked to the restoration of devolution. He said the initiative had all-party support and was supported by a large element of the business community.

"We need the generality of people in Northern Ireland to understand the size of the prize and fully back the politicians going all out to get it. Now is the window of opportunity," he said.

Sir George pointed to recent reports indicating that the level of foreign direct investment was reverting to the levels of five years ago. He added that if the Republic began to suffer from a capacity issue, it was preferable for investors to go to Northern Ireland than elsewhere.

"If it [ the tax cut] doesn't happen, Northern Ireland will simply go on stuck at 20 per cent below the UK average, heavily dependent on the public purse and everybody telling us we're not sustainable . . . A lot of people have had a chance to come up with alternative proposals but they haven't, so we've got to get on and make it happen."

There is still scepticism within Northern Ireland's business community that the UK treasury will agree a separate tax rate for Northern Ireland, or that the EU will allow it to do so.